Yesterday, KPJ surged 10 sen (+3.03%) to settle at RM3.40. Chart-wise, KPJ recently rebounded from its support level of RM2.97. Key indicators (MACD, Stochastic and RSI) are positive, suggesting that buying momentum is piling up. Thus, we believe that KPJ could retest its 100-day SMA resistance level of RM3.43. Should this resistance be taken out, KPJ could rally further towards its next resistance level of RM3.66 (R2) and possibly RM3.87 (R3) next. The 100-day SMA resistance breakout should be considered as a buying opportunity for traders. On the flip side, traders should employ a stop-loss just below the RM3.39 (S1) resistance at RM3.36.

 

Source: Kenanga